European Union: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Observance of the CPSS-IOSCO Principles for Financial Market Infrastructures
IMF Staff Country Reports, December 3, 2013
Source details
- Canonical URL
- European Union: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Observance of the CPSS-IOSCO Principles for Financial Market Infrastructures
Other formats
Bibliographic details
- Published: December 3, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475513837.002
Executive summary
- This paper discusses the main findings of the Detailed Assessment of Observance of the Committee on Payment and Settlement Systems–International Organization of Securities Principles for Financial Market Infrastructures (FMIs) for the European Union.
- Euroclear Bank’s risk framework is generally sound.
- Euroclear Bank should become operationally ready to fully implement plans for recovery and the orderly winding-down of operations.
- In anticipation of the emerging international regulatory standards and frameworks on recovery and resolution of FMIs, Euroclear Bank has developed recovery plans and plans for the orderly winding down of its operations.
- Important risk measures have been taken to reduce credit risk, but further improvements are needed to comply with the international standards.
Main findings
- Euroclear Bank’s risk framework is generally sound.
- Recovery and orderly wind-down planning:
- Euroclear Bank has developed recovery plans and plans for the orderly winding down of its operations in anticipation of emerging international regulatory standards and frameworks on recovery and resolution of FMIs.
- Operational readiness to fully implement those plans remains an outstanding need.
- Credit risk:
- Important risk measures have been taken to reduce credit risk.
- Further improvements are needed for full compliance with international standards.
Policy recommendations and implications
- Euroclear Bank should become operationally ready to fully implement plans for recovery and the orderly winding-down of operations.
- Continue strengthening measures to reduce credit risk to meet international standards.
Subject coverage and keywords
- Subject: Collateral, Credit, Credit risk, Currencies, Financial institutions, Financial regulation and supervision, Money, Securities
- Keywords: cash correspondent, Collateral, CR, Credit, credit risk, Credit risk, Currencies, EB participant, Euroclear system, financial market, Global, ISCR, letter of credit, management committee, risk management, Securities
Content in this bundle
- _cr13332 - Executive Summary